Headquarters: Milwaukee, Wisconsin
Founded: 1914
Revenues: $1.4 billion (fiscal year ending July 31,2007)
Employees: 9,000 total, 2.584 U.S.
Ticker: BRC (NYSE)
Web Site: bradycorp.com
What It Does: Safety and identification products for a variety of industries
Frank Jaehnert makes no bones about how proud he is of the strides his company, Milwaukee-based Brady Corporation, has made under his leadership. “When I took over as CEO in 2003, the company had about $550 million in sales and $21 million in net income,” Jaehnert says. “We had a goal to get the company to $1 billion in sales and $100 million in net income. We did it in 2006. This year, we will be close to $1.5 billion.”
That process hasn’t always been easy. His arrival was inaugurated with a series of cuts and restructuring efforts. At the time, Jaehnert told his people, “While making cuts is not the way one wants to start out as CEO, we know that we can’t get to where we want or need to be in small steps. We have to take dramatic ones.”
The company that turned its fortunes around by not playing it safe has made its mark by helping others stay safe. Brady makes warning and safety stickers, labels, and other products that serve the electronics, telecommunications, manufacturing, electrical, construction, and medical industries—in short, any place that’s subject to regulatory compliance requirements imposed by agencies such as the EPA and OSHA. The company also makes identification products for printed circuit boards, as well as precision die-cut components for mobile telecommunications devices and hard disk drives.
Jaehnert came to Brady from German automotive supply giant Robert Bosch 13 years ago. When he became CEO, he was charged with turning Brady around. Having inherited a company that had grown staid, he began rolling the dice, raising $665 million to make strategic investments and acquisitions. Jaehnert has continued to move aggressively ahead, spending about $850 million on some 30 acquisitions over the past five years.
The headlong approach was a shock to the company’s system, but one that’s paid off: Thanks to streamlining efforts, the company’s net income grew by double digits each of the last two fiscal quarters, continuing a growth trend.
The employee count has also grown during his tenure as CEO from about 3,000 worldwide to more than 9,000. The number of global locations has gone from about 50 to more than 90, including incursions into Thailand, Turkey, India, Slovakia, Mexico, and China.
“When I started as CEO, we had maybe 200 people in China,” Jaehnert says. “Now we have 2,500. Five years ago, we had nothing in Thailand; now we have about 500 people there. We also now have 300 people in Mexico, a manufacturing center in India, and a call center in the Philippines.”
Closer to home, Brady has increased its U.S. work force by 13 percent, not including personnel inherited from acquisitions. Generally speaking, the company looks for acquirees that will help bring Brady into new geographical areas, increase market share, or add new technologies or products to its mix.
Jaehnert encourages the company’s designers and sales force to constantly keep in mind ideas for new or updated products, including thermal label printers, archiving software, and flame-retardant tags.
“My plan is to have a splash per quarter,” he says. “Whether it’s an acquisition or a new product launch—just something that allows our sales force to go to our customers and say, ‘Guess what’s new.’ Even if they don’t sell it that day, it’s something to talk about.”
